Equity markets again posted gains last week, as they have in 9 of the past 11 weeks with the US and Europe posting gains of approximately 0.6%. In fact, The DJIA posted gains in 10
consecutive days until finally taking a breather on Friday by easing 25 points to finish the week at 14,514. The S&P 500 came within a whisper of also breaking its 2007 highs but fell short
toward the end of the week and now sits within 0.28% of the high water mark. A proposed bank deposit tax in Cyprus rattled markets late Friday as did a record ‘miss’ and 15 month low
reading on a consumer confidence survey. Conversely, markets were encouraged by sizable dividend announcements and share buybacks by several large US banks. Energy led the market for
the week, up 1.89%, while information technology and telecommunications names lost minor ground.
U.S. consumer prices rose 0.7% in February, the most in almost four years. The price of gasoline rose 9.1%, which was responsible for three-quarters of the increase. Excluding food and
energy, the core price index rose 0.2%. The four-week average of first-time jobless claims dropped to 346,750, the lowest level since March 2008. The number of people receiving continued
benefits fell by 89,000. Interest rates fell slightly across the curve last week, but still stand significantly higher for the year as 10 – 30 year maturities remain up 20 – 30bps. The 10 year US
Treasury finished the week at 1.99%. Investors will be looking to the Fed as they commence the FOMC meetings beginning Tuesday. Commodity markets were generally positive last week,
up 0.81%, with a strong move of 8.43% in natural gas. Oil gained 1.63% on the week to finish at $93.45.
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